TECHNICAL UNIT DAVIS-LYNCH INC. TYPE 778-MC & 777-HY STAGE COLLAR JCE 02/17/03. FILE: 778-MC TECH NEW.doc REV. 1 Page 1 of 6 DAVIS

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1 FILE: 778-MC TECH NEW.doc REV. 1 Page 1 of 6 DAVIS

2 FILE: 778-MC TECH NEW.doc REV. 1 Page 2 of 6 DESCRIPTION In the process of cementing a casing string of an oil or gas well, it may be desirable or necessary to pump the cement in two stages. In order to do this, a mechanical or hydraulic stage collar is necessary to allow access to the casing annulus at some point in the middle section of the casing string. The type 778-MC stage Collar allows access to the annulus by dropping or pumping down an opening device. This device seats in the opening sleeve and with application of pressure, the sleeve shifts downward exposing the ports to allow cement circulation. Cement can then be displaced out the ports with a closing plug, which will land on a seat in the closing sleeve. With application of pressure, this sleeve shifts downward, sealing off the cementing ports. The tool now has pressure integrity. The type 777-HY hydraulic stage collar requires no opening device; merely the application of internal casing pressure activates the differential-piston opening sleeve shifting it downward exposing the cementing ports. Cement can then be displaced out the ports with a closing plug, which will land on a seat in the closing sleeve. With application of pressure, this sleeve shifts downward, sealing off the cementing ports. The tool now has pressure integrity. Both tools can be drilled out after completion of the cementing operations, leaving no I.D. restriction.

3 FILE: 778-MC TECH NEW.doc REV. 1 Page 3 of 6 Fig. 1: Running In Hole Fig. 2: Opened Position Fig. 3: Closed Position TYPE 778-MC STAGE COLLAR OPERATIONAL SEQUENCE Fig. 1: Running In Hole Pin and Box threads are identical to the casing threads. Stage collar integral connection is designed for gas tightness. Seal on opening sleeve provide internal and external pressure integrity across the fluid ports. Fig. 2: Opened Position Opening device has landed and, after pressure is applied, the lower set of shear balls is broken and the sleeve shifts downward to uncover the fluid ports. Pumping operations can now be conducted through the stage collar. Fig. 3: Closed Position The closing plug has landed and, after pressure is applied, the other set of shear balls is broken and the sleeve shifts downward, shutting off the fluid ports. Double seals above and below the ports provide pressure integrity, and a lock ring secures the sleeve in the permanently closed position.

4 FILE: 778-MC TECH NEW.doc REV. 1 Page 4 of 6 Fig. 1: Running In Hole Fig. 2: Opened Position Fig. 3: Closed Position TYPE 777-HY STAGE COLLAR OPERATIONAL SEQUENCE Fig. 1: Running In Hole Pin and Box threads are identical to the casing threads. Stage collar integral connection is designed for gas tightness. Seal on opening sleeve provide internal and external pressure integrity across the fluid ports. Fig. 2: Opened Position Pressure is applied against the landed and sealed first-stage plug, breaking the lower set of shear balls to allow the sleeve to shift downward and uncover the ports. Pumping operations can now be conducted through the stage collar. Fig. 3: Closed Position The closing plug has landed and, after pressure is applied, the other set of shear balls is broken and the sleeve shifts downward, shutting off the fluid ports. Double seals above and below the ports provide pressure integrity, and a lock ring secures the sleeve in the permanently closed position.

5 FILE: 778-MC TECH NEW.doc REV. 1 Page 5 of 6 DAVIS STAGE COLLAR STRESS ANALYSIS (1) BODY (1) BURST (1) COLLAPSE (3) MAX. SIZE MAT'L YIELD STR. RESISTANCE RESISTANCE TORQUE (LBS.) (PSI) (PSI) (FT-LBS.) 3 1/2 C ,059 14,250 14,890 5, /2 L ,734 12,000 12,539 4, /2 P ,384 16,500 17,241 6, /2 C ,477 13,874 12,808 7, /2 L ,349 11,683 10,786 6, /2 P ,605 16,065 14,830 9,241 5 C ,326 15,356 11,728 11,481 5 L ,696 12,931 9,876 9,668 5 P ,956 16,065 13,580 13, /2 C ,388 12,513 11,535 9, /2 L ,906 10,537 9,714 8, /2 P ,870 14,489 13,356 11, /8 C ,109 12,266 9,059 11, /8 L ,723 10,329 7,629 9, /8 P ,495 14,203 10,489 12,802 7 C ,371 13,151 10,653 12,336 7 L ,523 11,075 8,971 10,388 7 P ,219 15,227 12,335 14, /8 C ,422 12,808 10,421 13, /8 L ,934 10,786 8,776 11, /8 P-110 1,044,910 14,830 12,066 15, /8 C-95 1,182,443 10,832 9,893 17, /8 L ,741 9,122 8,331 14, /8 P-110 1,369,144 12,542 11,455 20, /8 C-95 1,374,801 10,237 9,232 20, /8 L-80 1,157,727 8,621 7,774 17, /8 P-110 1,591,875 11,853 10,690 23, /4 C-95 1,840,613 9,266 8,529 27, /4 L-80 1,549,990 7,803 7,182 23, /4 P-110 2,131,236 10,729 9,876 31, /4 C-95 1,978,468 8,480 7,150 29, /4 L-80 1,666,078 7,141 6,021 24, /4 P-110 2,290,858 9,819 8,279 34, /8 C-95 2,338,287 7,758 7,188 35, /8 L-80 1,969,084 6,533 6,053 29, /8 P-110 2,707,491 8,983 8,323 40, K-55 1,707,956 5,307 3,511 25, L-80 2,484,300 7,719 5,107 37, /8 K-55 2,240,437 4,165 3,435 33, /8 A-106 1,833,085 3,408 2,810 27, /8 N-80 3,258,818 6,058 4,996 48, K-55 2,787,567 4,342 3,253 41, A-106 2,280,737 3,553 2,662 34,211 (1) USING FORMULAS FROM API BULLETIN 5C3 (3) STD. HANDBOOK FOR MECH. ENGINEERS TABLE "TORSION OF SHAFTS" * ACTUAL MINIMUM YIELD STRENGTH WILL BE EITHER THE BODY YIELD STRENGTH OR THREAD MANUFACTURED ON CUSTOMER'S END. WHICHEVER IS LESS. *BURST OR COLLAPSE PRESSURES ARE LIMITED BY SEAL CAPABILITIES, FOR PRESSURE RESISTANCE ABOVE 9,000 psi CUSTOM-ORDERED SEALS ARE REQUIRED

6 FILE: 778-MC TECH NEW.doc REV. 1 Page 6 of 6 TYPE 778-MC STAGE COLLAR OPERATIONAL DATA Type 778 MC Type 778 MC-3S Nominal Maximum Weight Drillout Overall Opening Closing Opening Closing Opening Closing Casing Size Diameter Range I.D. Length Pressure Force Pressure Force Seat I.D. Seat I.D. Seat I.D. Seat I.D. (Inches) (Inches) (Lbs.) (Inches) (Inches) (PSI) (Lbs.) (PSI) (Lbs.) (Inches) (Inches) (Inches) (Inches) 2-7/ , / , / , , , , / , , / , , , , / , , / , , / , , / , , / , , / , , , , / , , , , Note: 4-1/2 thru 6-5/8 have 4-1 Ports. 7 thru 13/38 have 6-1-1/8 Ports. 16 thru 20 have /8 Ports. TYPE 777-HY HYDRAULIC STAGE COLLAR OPERATIONAL DATA Nominal Maximum Weight Drillout Overall Opening* Closing Opening Closing Opening Pressure Casing Size Diameter Range I.D. Length Pressure Force Pressure Force Seat I.D. Seat I.D. w/ Free-Fall Device (Inches) (Inches) (Lbs.) (Inches) (Inches) (PSI) (Lbs.) (PSI) (Lbs.) (Inches) (Inches) (PSI) 3-1/ , , / , , , , / , , , , / , , / , , / , , / , , / , , / , , *Standard Opening Pressure. Other pressures available on special order. Note: 4-1/2 thru 6-5/8 have 4-1 Ports. 7 thru 13/38 have 6-1-1/8 Ports. 16 thru 20 have /8 Ports.

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